Sterling Metals : Financial Statements

STERLING METALS CORP.

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023

Expressed in Canadian Dollars

NOTICE OF NO AUDITOR REVIEW OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

The accompanying unaudited condensed interim financial statements of the company have been prepared by and are

the responsibility of the Company's management. The Company's independent auditors have not performed a

review of these condensed interim financial statements.

STERLING METALS CORP.

(FORMERLY LATIN AMERICAN MINERALS INC.)

Expressed in Canadian Dollars

MANAGEMENT'S RESPONSIBILITY

To the Shareholders of Sterling Metals Corp.:

Management is responsible for the preparation and presentation of the accompanying unaudited condensed interim financial statements, including responsibility for significant accounting judgments and estimates in accordance with International Financial Reporting Standards. This responsibility includes selecting appropriate accounting principles and methods and making decisions affecting the measurement of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the unaudited condensed interim financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded, and financial records are properly maintained to provide reliable information for the preparation of unaudited condensed interim financial statements.

The Audit Committee are composed primarily of directors who are neither management nor employees of the Company. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information presented. The board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and the external auditors. The Audit Committee has the responsibility of meeting with management and the external auditors to discuss the internal controls over the financial reporting process, auditing matters and financial reporting issues. The Audit Committee is also responsible for recommending the appointment of the Company's external auditors.

We draw attention to Note 1 in the unaudited condensed interim financial statements which indicates the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

The financial statements were approved by the Board of Directors on May 30, 2023.

"Mathew Wilson"	"Dennis Logan"
Mathew Wilson, CEO	Dennis Logan, CFO

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--The accompanying notes form an integral part of the financial statements.--

STERLING METALS CORP.

(FORMERLY LATIN AMERICAN MINERALS INC.)

Expressed in Canadian Dollars

UNAUDITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

	As at		As at
	March 31,		December 31,
	2023	2022
Assets
Current Assets
Cash	$1,949,735	$3,260,978
Sales tax receivable	98,374	141,436
Prepaid expenses	152,097		169,842
Total Current Assets	2,200,206		3,572,256
Vehicle and equipment (Note 6)	99,951	107,668
Property rights, evaluation and exploration assets (Note 7)	10,560,758		8,758,671
	10,660,709		8,866,339
Total Assets	$12,860,915	$12,438,595
Liabilities
Current Liabilities
Accounts payable and accrued liabilities (Note 8)	$253,888	$270,686
Flow-through share premium liability (Note 9)	-	71,370
Total Current Liabilities	253,888		342,056
Total Liabilities	253,888	342,056
Shareholders' Equity
Share capital (Note 10)	38,677,174	37,912,174
Warrants (Note 10)	11,213,271	11,213,271
Share based payment reserve (Note 10)	16,216,157	15,980,757
Deficit	(53,499,575)		(53,009,663)
Total Shareholders' Equity	12,607,027		12,096,539
Total Liabilities and Shareholders' Equity	$12,860,915	$12,438,595

Nature of operations and going concern (Note 1)

Commitments (Note 7 and 9)

The financial statements were approved by the Board of Directors on May 30, 2023, and were signed on its behalf by:

"Stephen Keith"	"Richard Patricio"
Stephen Keith, Director	Richard Patricio, Director

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--The accompanying notes form an integral part of the financial statements.--

STERLING METALS CORP.

(FORMERLY LATIN AMERICAN MINERALS INC.)

Expressed in Canadian Dollars

UNAUDITED CONDENSED INTERIM STATEMENT OF LOSS AND COMPREHENSIVE LOSS

		Three Months		Three Months
		Ended		Ended
		March 31,		March 31,
		2023	2022
General and Administrative Expenses
General and administration	$74,413	$46,485
Investor relations	118,683	30,864
Management and Director fees (Note 12)	97,179	82,751
Consulting fees	-	34,377
Share based compensation (Note 10(c))	235,400	-
Professional fees	35,607	15,957
Operating loss for the period	(561,282)		(210,434)
Recovery of flow-through premium liability (Note 9)	71,370		13,195
Net loss and comprehensive loss for the period	($489,912)	($197,239)
Net loss per share for the period
Basic and fully diluted loss per share	($0.01)		$0.00
Weighted Average Number of Shares Outstanding		70,260,259	48,319,312

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--The accompanying notes form an integral part of the financial statements.--

STERLING METALS CORP.

(FORMERLY LATIN AMERICAN MINERALS INC.)

Expressed in Canadian Dollars

UNAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY)

	Number of			Share Based
	shares	Share		Payment		Total
	outstanding	Capital	Warrants	Reserve	(Deficit)	Equity
Balance at January 1, 2022	48,319,311	$36,023,236	$8,903,610	$15,396,357	($51,468,916)	$8,854,287
Net loss and comprehensive loss for the period	-	-	-	-	(197,239)	(197,239)
Balance at March 31, 2022	48,319,311	$36,023,236	$8,903,610	$15,396,357	($51,666,155)	$8,657,048
Balance at April 1, 2022	48,319,311	$36,023,236	$8,903,610	$15,396,357	($51,666,155)	$8,657,048
Shares and warrants issued on private placement (Note 10)	21,428,572	2,149,172	2,329,400	-	-	4,478,572
Share issuance costs	-	(267,412)	(274,210)	-	-	(541,622)
Issuance of broker warrants	-	-	257,936	-	-	257,936
Shares issued on warrant exercise (Note 10)	12,376	7,178	(3,465)	-	-	3,713
Share-based compensations - Issuance of share purchase options	-	-	-	584,400	-	584,400
Net loss and comprehensive loss for the period	-	-	-	-	(1,343,508)	(1,343,508)
Balance at December 31, 2022	69,760,259	$37,912,174	$11,213,271	$15,980,757	($53,009,663)	$12,096,539
Balance at January 1, 2023	69,760,259	$37,912,174	$11,213,271	$15,980,757	($53,009,663)	$12,096,539
Shares issued on property option acquisition (Note 7)	4,500,000	765,000	-	-	-	765,000
Share-based compensation	-	-	-	235,400	-	235,400
Net loss and comprehensive loss for the period	-	-	-	-	(489,912)	(489,912)
Balance at March 31, 2023	74,260,259	$38,677,174	$11,213,271	$16,216,157	($53,499,575)	$12,607,027

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--The accompanying notes form an integral part of the financial statements.--